Cursor, an AI coding startup, is on the verge of securing new funding that could see the company raise a minimum of $2 billion in fresh capital, as reported by sources familiar with the matter. Current investors Thrive and Andreessen Horowitz are expected to lead the financing, valuing the company at $50 billion before the capital injection.

Additionally, Battery Ventures, a new investor, might also join the funding round, while strategic investor Nvidia is anticipated to contribute as well.

Although the round is oversubscribed, the deal terms are still subject to change before finalization.

If the financing is successfully completed, it would significantly increase Cursor’s previous post-money valuation of $29.3 billion obtained during its last fundraising round six months ago.

Despite facing tough competition from other AI-coding solutions like Anthropic’s Claude Code and OpenAI’s Codex, Cursor’s revenue continues to experience rapid growth.

Cursor is projected to finish 2026 with an annualized revenue exceeding $6 billion, indicating a substantial increase compared to its current revenue. The company aims to triple its annualized revenue within the next 10 months, building on its achievement of reaching $2 billion in annualized revenue in February.

Previously operating at negative gross margins, Cursor recently achieved slight gross margin profitability by introducing its proprietary Composer model and leveraging more cost-effective models like Kimi from China.

While Cursor has achieved positive gross margins in sales to large enterprises, it continues to incur losses from individual developer accounts.

By reducing its reliance on external providers, Cursor aims to mitigate the risk of being replaced by its suppliers, particularly Anthropic’s Claude Code, which poses a significant challenge as a direct competitor.

When contacted for comments, Cursor and Battery Ventures declined to provide a statement, while Thrive, a16z, and Nvidia did not respond.